Govt withdraws support for Agribank board

GOVERNMENT has withdrawn its support for three Agribank directors as the confrontation between the board of directors and the Minister of Finance deepens.

On Friday the standoff continued as the directors remained in their positions after the Minister of Finance Saara Kuugongelwa-Amadhila on Wednesday “demanded” that they resign after rejecting her order to appoint Deputy Minister of Lands Isak Katali as acting chief executive officer of Agribank. Agribank Chairman Dr Franz Stellmacher said they were scheduled to meet this week.Another board member said the directors were unable to get together as some of them had been travelling.A press statement from the Ministry of Finance last week said the Minister of Agriculture, Water and Rural Development, Helmut Angula, had pulled the Ministry’s representative from the board.The Ministry of Agriculture, Water and Rural Development has a position on the board of directors, which the Minister fills with a handpicked representative.Other organisations, such as the farmers and trade unions are also represented in the institution, whose members are appointed by the Minister of Finance.In a statement signed by Deputy Minister of Finance, Clara Bohitile, on behalf of Kuugongelwa-Amadhila, the Ministry said it also had “withdrawn concurrence with the appointment of the chair and vice-chairperson” of the board.The Minister of Finance does not have the power to dismiss the Agribank board.She has, however, proposed amendments to Parliament to grant her the authority to remove the chairman and deputy chairman as she wishes.The statement from the Finance Ministry accused the directors of “pursuing a stratagem, laden [with] certain self interests a the expense of the national interests”.It did not elaborate but it was clear the Minister was annoyed at the rejection of Katali as acting CEO.The directors reportedly told the Minister that Katali was “not suitably qualified” and did not have the “experience” to run the bank.The Ministry said in the statement that Katali would have had to “glean from the Board’s input in respect with operation[s] of the institution”.Agribank has been without a permanent CEO for more than a year as the directors and the Minister squabbled over who to appoint.The post was left vacant last week when Shihaleni Ndjaba left to take up the post of Permanent Secretary at the Ministry of Works, Transport and Communication.Agribank Chairman Dr Franz Stellmacher said they were scheduled to meet this week.Another board member said the directors were unable to get together as some of them had been travelling.A press statement from the Ministry of Finance last week said the Minister of Agriculture, Water and Rural Development, Helmut Angula, had pulled the Ministry’s representative from the board.The Ministry of Agriculture, Water and Rural Development has a position on the board of directors, which the Minister fills with a handpicked representative.Other organisations, such as the farmers and trade unions are also represented in the institution, whose members are appointed by the Minister of Finance.In a statement signed by Deputy Minister of Finance, Clara Bohitile, on behalf of Kuugongelwa-Amadhila, the Ministry said it also had “withdrawn concurrence with the appointment of the chair and vice-chairperson” of the board.The Minister of Finance does not have the power to dismiss the Agribank board.She has, however, proposed amendments to Parliament to grant her the authority to remove the chairman and deputy chairman as she wishes.The statement from the Finance Ministry accused the directors of “pursuing a stratagem, laden [with] certain self interests a the expense of the national interests”.It did not elaborate but it was clear the Minister was annoyed at the rejection of Katali as acting CEO.The directors reportedly told the Minister that Katali was “not suitably qualified” and did not have the “experience” to run the bank.The Ministry said in the statement that Katali would have had to “glean from the Board’s input in respect with operation[s] of the institution”.Agribank has been without a permanent CEO for more than a year as the directors and the Minister squabbled over who to appoint.The post was left vacant last week when Shihaleni Ndjaba left to take up the post of Permanent Secretary at the Ministry of Works, Transport and Communication.